Over the short-term stocks that have been hit the hardest, like RBL Bank, are continuing to mean revert to the upside. Money is rotating out of Nifty Pharma, Nifty Fast Moving Consumer Goods, and other areas that have led the recent rally and is now flowing into other areas like Nifty Financial Services that have yet to participate to the same extent. In this chart we're looking at RBL Bank confirming a failed breakdown and bullish momentum divergence by closing back above its April 3rd, closing low near 110. As long as prices are above this level, then these conditions suggest further upside in the near-term and mean reversion towards our first target of 210. Additionally, it's our view that strength in some of the worst stocks like RBL Bank is evidence of risk appetite among market participants and suggest further near-term upside for Indian Equities as an asset class.
